News

Global news: The Significance of TFTA

Author:Dreamy F

Source:www.china-dispsoable.com

Release on :2016-05-20

As we know, recently, a passage written by
Uganda Minister of trade and Industry department was published on the New
Vision, which outlines the importance of TFTA to Uganda. In June,
2015, COMESA, EAC and SADC all signed TFTA in Egypt, which is a significant
step to start CFTA negotiation.

Before signing, regional economy of SADC, EAC and COMESA has built the
relevant free trade area, customs union, monetary convention and Common
Market through integration work like developing trade and economic sphere.
These regional economies would have some common members, so it's
the urgent desire of these three economies to found an integration plan
covering all areas. However, it makes the process of integration plan slow
because the lack of attractiveness of this trade environment and that
different countries have different trade low and supervisory system.

Uganda, as a country which has small domestic market and limited economy
scale and gradually being marginalized in multilateral trade, is
impossible to realize its trade target with its own effort. Therefore, it
makes Uganda have the chance to join initially in the concrete actions
to implement the agreement by signing TFTA. Once the Free Trade Area is
founded, Uganda will be part of the big market which consists of 26
countries, covers 57% of Africa population and 58% of the GDP. And Uganda
will attain more low-price and high-quality products, improve the
chances of area trade and investment, create more employment opportunity
and advance the competitiveness.

The next stage, TFTA will launch the second
stage negotiation about service trade, trade cooperation, competitive
policy, and intellectual property right and cross-border investment. And
the Department of trade and Industry will participate in the negotiation
actively in order to confirm the establishment of trade policy of areas
and global competitiveness which benefit its private sector.